GPF Interest Rate: Big update from Finance Ministry for employees, this much interest will be available on PF

Income tax
General PF Interest Rate: If you yourself or someone in your family is a government employee then this news is for you.

Yes, the Finance Ministry has given its decision on the interest rate of General Provident Fund (General PF) for the October-December quarter of the financial year 2024. The Finance Ministry has kept the interest rate of GPF unchanged at 7.1 percent. That means this quarter too, interest on GPF will be available at the old rate of 7.1 percent only. This interest rate will be effective from 1 October 2023 to 31 December 2023.

Only government employees can invest

Let us tell you that GPF is a social security scheme available for central employees. Government employees can become its members by contributing a certain part of their salary. Only government employees can invest in GPF account. There is no contribution of any kind from the government in this. The government gives only interest on it. However, this investment should not be less than 6% of the employee’s salary.

Exemption to taxpayers under Section 80C,

The maximum contribution can be up to 100% of the employee’s salary. The maturity of the investments made in this occurs at the time of retirement. Employees can also take loan against GPF.

In this tax saving scheme, taxpayers get exemption under Section 80C. The government has not made any change in the interest rate of PPF for the October to December quarter. This also remains at the old level of 7.1 percent.

Recently the government had changed the interest rate of 5 year RD scheme in small savings schemes for the October quarter. The Finance Ministry had increased its interest rate from 6.5 percent to 6.7 percent. There was no change in the interest rates on other small savings schemes including PPF.

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